Newsletter – May 6, 2021

AIR FREIGHT UPDATES

Covid accelerates air cargo’s adoption of technology

aircargonews.net
The covid crisis has accelerated air cargo’s adoption of technology and its push towards a more sustainable future, according to speakers at the Air Cargo Europe online event.
Speaking on the Future of Air Cargo panel discussion, organised by Air Cargo News, Qatar Airlines chief officer cargo Guillaume Halleux said that the speed at which customers had begun to adopt digital booking since its capacity was listed on third-party platform WebCargo in January was “beyond our own belief”. Read more here.

Ex-China air freight rates continue rise

lloydsloadinglist.com
Ex-China air freight prices are continuing to rise this week on the back of highly constrained air freight capacity and strong demand, leading to very high load factors.
Air freight data specialist TAC Index highlighted that as air cargo capacity is continuing to tighten, “some carriers are starting to take advantage of the situation by forcing trade-up from economy product to priority due to constrained capacity”, likening this to airlines “moving the curtain in business class to the max”.  Read more here.

OCEAN FREIGHT UPDATES

Yokohama crowned world’s most efficient container port

splash247.com
The Japanese port of Yokohama has been crowned as the world’s most efficient box facility in a new study launched by the World Bank and data firm IHS Markit.
Asian container ports are the most efficient in the world, dominating the top 50 spots according to the new global Container Port Performance Index (CPPI) launched yesterday, the culmination of 10 years’ research. Read more here.

Caution urged as boxship charter bonanza rolls on

splash247.com
There’s no let-up in the booming boxship charter scene with vessels breaking further records not just in prices paid, but also durations. Nevertheless, some analysts are beginning to question how much longer the red-hot conditions can last.
The most eye-catching recent deal sees CMA CGM taking the 8,814 teu Northern Juvenile for a 60-month charter, with Alphaliner suggesting the French liner giant is paying $48,500 a day for the ship, which is $3,500 higher and 12 months longer than deals agreed on sister tonnage at the beginning of March. Read more here.

Port of Montreal returns to full operations

lloydsloadinglist.com
Operations at the Port of Montreal have begun returning to normal following several weeks of disruption due to industrial action by longshore workers, although customers of Canada’s second-largest port may still experience delays in the coming weeks.
The resumption of operations this week came after high-level political intervention in Canada, leading to the passage by the House of Commons of legislation to provide for the resumption and continuation of operations. Port operator Montreal Port Authority (MPA) said the decision “means that the operational and commercial uncertainty related to labour relations between the dockworkers’ union CUPE Local 375 and the Maritime Employers Association (MEA) is now over”. Read more here.

At least two more years of freight rate pain for shippers as carriers ‘cash in’

theloadstar.com
Shippers must brace themselves for at least two more years of elevated freight rates and tight supply, according to Drewry.
The maritime consultant predicts average rates – a blend of spot, contract, backhaul and regional trade rates – will increase about 23% this year; but for some headhaul routes, it said, the hike would be “substantially higher”. Read more here (login required).

Shipping lines can’t cope with booming perishables trade and lack of reefers

theloadstar.com
Even as reefer container freight rates soar, shipping lines are “far from coping” with the seasonal demands of perishables.
According to Drewry, a weighted average of rates across the top 15 “reefer-intensive” tradelanes jumped 26% in the first quarter, following a seasonal uptick in cargo demand and rising bunker surcharges.
This placed rates at their highest level since the reefer index was launched in 2017, and Drewry expects rates to rise further in Q2. Read more here (login required).

INTERNATIONAL BUSINESS – GOVERNMENT UPDATES

Cambodia ends blanket COVID-19 lockdown despite more infections

reuters.com
Cambodia ended on Thursday a blanket coronavirus lockdown in Phnom Penh after three weeks, as busy traffic returned to some streets of the capital, though authorities retained tighter curbs in some districts where infections have surged.
The Southeast Asian nation has recorded one of the world’s smallest COVID-19 caseloads, but infections have climbed from about 500 in late February to 17,621 now, with 114 deaths. Authorities recorded 650 new cases and 4 deaths on Thursday. Read more here.